From the pointy end of the car-buying spear

General

We spoke to a number of dealers to gain an insight into the issues
making fleet vehicle acquisition so challenging and we also asked for their
advice on formulating strategies to move forwards.  

 

Have there been any specific changes to the way dealers have had to conduct day to day business?
David Wyatt of Winger Group, representing Suzuki, Subaru, Jeep, MG, Maserati, Hyundai, Isuzu, Fiat, Alfa Romeo and RAM, gave a broadstroke answer: “We have to approach everything we do with great caution,” he says. “The health and safety of our staff and customers is first and foremost.”
There were – during the height of Covid in 2021 – very strict protocols regarding test drives. Any verbal interaction was carried out behind barriers, masks were standard uniform accessories and grooming vehicles was done well ahead of the scheduled collection time.
Mel Rushton of South Auckland Ford, a more corporate dealership with internationally-guided procedures, explained what changes were put into effect during 2021 and which still apply today.
“No one comes onto the site without a mask,” she says. “We have people who are very enthusiastic about monitoring that and this allows the rest of the team to focus on what we’re doing.
“As to test drives, these are organised well in advance ensuring that we can prepare the vehicle properly and safely. We have excellent guidelines on how to prepare the vehicle which partly involves misting the interior of the vehicle with a long-life sanitising agent.
“Vehicle handovers – once done with a sales specialist sitting in the car with the new owner – are now done with the owner in the car and the specialist outside on the left, maximising social distancing wherever possible.
“Then for the team – and customer’s peace of mind – Friday is “Up your nose to Covid” day, where staff are tested every week for any signs of infection. My personal car doesn’t get its dipstick into the engine half as many times as I have had Covid sticks put up my nose!”
How accepting have customers been to the changes in the market?
The answer to this was straight forward and our dealers all confirmed the same thing. Liz Stewart of Peugeot Greenlane summed it up:
“Customers have all come to realise that no matter who you go to buy cars from, they’re all going to tell you the same thing. There are likely to be delays getting the car you want. Most are ready to accept the situation – not that they have a choice – but it is up to us to manage their expectations.”
What has changed is the consumer mindset of a quick transaction.
“Pre-Covid, a lot of customers knew what they wanted, found it at a dealership, came in paid their money and left with the keys.
“These days – with the accepted delays – customers are looking for greater interaction with their dealers; they’re looking for that quality of service and personal contact which had been lost to ‘efficient’ purchasing. It’s refreshing and gratifying to see customers willing to share their valuable time with us as they make important buying decisions.  
David Wyatt agrees, adding: “Fleet customers have generally accepted the current market of model restrictions and delays a little better than the general public – in many cases they are also dealing with their own delay issues in their specific industries. Communication is key.
“Customers still want the right vehicles in a timely manner but those who are adaptable always get the best results. We’ve seen customers over the past year more accepting of a different colour vehicle to their first choice or stock delays and lease extensions.
“Winger Motors has recently entered into a partnership with Auckland Cricket for a fleet of nine vehicles. While white was the preferred colour for all nine, we were able to meet the order months sooner by using a combination of white, black and silver models.”

What would be the advice from the dealership perspective to customers looking/needing to buy in the short term?
My advice to customers who need to buy in the short term,” says David, “is if you see a vehicle you like online, make an immediate inquiry. Even if you’re not in a rush, contact a dealership to discuss what you’re after. In the internet age people can find out almost everything they need to know about a vehicle before they step foot on a dealership yard, but what they can’t see is future new car stock and by talking to a team member, they can put you at the top of the list if the right car becomes available for you.”
Mel Rushton agrees. “Plan ahead,” she suggests, “and be prepared to wait in the queue. Depending on the model, you could be waiting three, six, or up to nine months, but you won’t know what the timeline is until you talk to a dealer. We’ve had Transits ordered now which won’t be delivered for nine months but we’ve had Escape PHEVs which we’re told we’ll see in July.”
And Liz’s comment was interesting: “Now is not the right time to be buying used vehicles,” she says. “The stock is not there and who knows when it will bounce back. Buying new – for all that there will be delays – is a much better proposition. You will get the vehicle you want; it just may take some time.”

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